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Posts Tagged ‘Turnover’

What are some of the most profitable words used today?

September 6, 2010 2 comments

Do you want fries with that?

Are some of the most profitable words in history. Those six little      words are responsible for millions of dollars in revenue each year for McDonald’s.

Okay it’s not the words that are relevant to you, I think your customers maybe a little surprised if you offered fries with their purchase, or maybe not, if you’re in that industry. It’s the action, the intent, the fact that they’ve asked.

What do I mean?

It’s asking for the up sell, which leads to the increase in sales, the moving of more product and the increase in profits.

McDonalds, as with many others, have successfully mastered the art of asking for the up sell. The “super size”, the “do you want fries with that”, as I’ve said, it’s delivered them many millions in increased revenue and profits, by just asking for it.

Are you using the up sell to increase profits?

This simple but highly effective tactic can be used to increase turnover and profits dramatically in a short space of time.

It can be as simple, as I was reminded with my coffee order the other day and no it wasn’t from McDonalds, as being reminded that you have an add-on product available, in my case it was a muffin.

That simple add-on of a muffin took the sale from $3 to $7.50, over double my initial intended purchase price! But it was relevant and asked for at the right time, at point of sale.

In this case these are small numbers, but doing this consistently, without sounding like McDonalds, will lead to higher turnover and increased profits.

Don’t have fries to up sell?

This tactic to drive sales and profits isn’t just restricted to the fast food outlets or café’s. Most businesses have or could have an add-on product. Here’s a few quick examples:

  • Mortgage broker – would you like insurance with that, life or income protection? (this can be sold via an affiliate with commission paid to you for referrals).
  • Air conditioner / white goods / TV and so on purchase – would you like a maintenance plan with that?
  • For an extra $5 per month we can offer you a higher spec product / plan / service.

The list can be endless but gives you an idea. Just stop think about what you do or offer and what you can add to it that’s complimentary. Think about how you can effectively introduce it to your customer at the point of sale. But don’t make it sound like McDonalds!

Look for things that will benefit the customer, not what would just benefit you.

Thanks for reading and I hope you enjoyed this post, and I always look forward to your comments.

Thanks, Tim.

Marketing, a rewarding investment

August 16, 2010 1 comment

Marketing is an investment not an expense:

Surely not! Marketing is an expense! …. Well yes …but NO. I will explain.

Let’s have a look at an expense. Paper clips, yes let’s buy paper clips as an example. Great invention, keeps everything tidy but beyond this does it give your business a return? Does it create sales on its own? Well, no it doesn’t.

Ok let’s try something bigger, more essential, a whole department, say accounts or operations. Yep both essential to the business, you can’t get paid if you don’t raise and invoice and collect in the money, or if you don’t deliver the goods on time.

But, all of the above are expenses. They’re costs of doing business.

I hear you cry…”placing an add is a cost”, “running a direct mailing campaign is a cost”. Yes true, but totally different.

A different mind set needs to be formed about these “expenses”. The Marketing “expense” creates new customers, without which we have no turnover for our accounts to bill for, or any products for our operations to deliver.

Therefore we are left with no other conclusion, Marketing is an investment. One that has a measurable return.

Don’t agree or have more to add?

Thanks again for your valuable time, Tim